Expert Q&A – Landlord insurance
What do landlords need to know about insurance?
Landlords come in many shapes and sizes, from individuals letting out a private residential home to businesses managing a portfolio of properties. Whichever type of landlord you are, there are a diverse range of risks that you might be exposed to.
We sat down with our in-house expert, Underwriter George Besant, to answer the key questions about insurance and help you understand all you need to know about the protection provided by landlord insurance.
Whether you're new to being a landlord, or finding your current insurance provider is struggling to offer the kind of protection your need, find out how we help landlords and learn more about the range of covers we offer in our customisable landlords insurance product.
Do I need landlord insurance?
The exposures a landlord faces are unique and cannot be fully covered by a standard household or home insurance policy. Landlord insurance exists to protect the landlord’s investment as well as the liabilities they face from letting their property out to tenants.
How has the insurance market changed for landlords in the last few years?
The landlord insurance market has changed dramatically simply because the rental property industry itself has changed. With a combination of changes to what is considered taxable income, fluctuating mortgage rates and high inflation, it has never been more challenging to be a landlord.
What type of businesses or individuals is landlord insurance most popular with?
The most common type of landlord is an ‘accidental landlord’, such as someone who becomes a landlord by inheriting a property. They don’t intentionally become a landlord but find themselves looking to get tenants in with tight lead in times.
What is the biggest risk of not having landlord cover in place?
Property owners might have home insurance in place and let their property out to tenants, but not have landlord insurance. They risk having a claim declined because they are in breach of the terms and conditions of their household insurance policy by renting to tenants.
What other covers are typically bought alongside landlord insurance?
Rental guarantee is a popular product as it protects a landlord’s income regardless of whether their tenant pays rent.
What our expert says
George Besant, Underwriter
A common misconception is that landlord insurance is the same as a household policy and that they’re interchangable. This is a very risky assumption as a property being rented out to a tenant under a household policy could find their claim declined.
What claims trends have you seen amongst landlords?
The most common claim we receive is accidental damage, however, the most severe claims trend we see – which is particularly prevalent in winter – is for damage caused by burst water pipes.
What makes Superscript's landlord cover different?
Our cover is customisable, it is designed to suit our customers rather than an insurer’s idea of what a landlord is. Our customers can pick and choose the covers they want regardless of whether they’re renting to a commercial business or a residential tenant.
We understand that a landlord doesn’t work on an annual cycle and so we don’t tie our customers into policies with long-term, annual commitments.
What is the question customers ask most about landlord insurance?
We often get queries on how accurate the rebuild costs are because if you haven’t had your property surveyed recently then this value can be hard to calculate. This is particularly true in today’s environment where building costs have risen by up to 19% over the past 12 months.
What is an example of a situation in which this cover would pay out to a customer?
An unknown electrical fault causes a fire which leaves the property uninhabitable. Not only will our product pay for the property to be repaired (or rebuilt) but, if a customer chooses to add on rental income cover, we will also cover the loss of rent so that the customer retains their income whilst their property is uninhabited.
Is landlord insurance mandatory?
While landlord insurance is not a legal requirement for property owners, almost every mortgage provider will require a mortgage holder to purchase valid landlord insurance in their terms and conditions.
Superscript supports property owners of many different kinds find the right covers to help ensure you're protected against risk. Learn more about our landlord insurance product.
This content has been created for general information purposes and should not be taken as formal advice. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.